Debate Rages About Swiss Currency Valuation Versus Euro

Back from November 6, 2014, Peter Schiff’s Message to Switzerland: Save Your Currency and Your Country – YouTube

Peter mentions that in 1999 Swiss went off the gold standard was 100% of the reserves gold is now just 7% of reserves and now the reserve is mainly euros (paper).  I am old fashioned, too.  Paper riches turn into ashes at the slightest touch of a match which is why true metals are valuable.  Ownership of anything comes from the barrel of guns.  That is, property and wealth rights are defended violently throughout history.  Any accumulation of property or wealth will be seized by either the mob (we saw this recently in Ferguson MO when mobs burned down businesses while the politicians prevented the police and military from defending them).  Switzerland has had the fortune to play off everyone so they can be ‘neutral’ while several world wars raged violently around them.

 

In 2008, Switzerland had to spend $60 billion to bail out UBS thanks to the lending collapse.  Their wild lending loose rules nearly pulled down not just the EU and US banking systems but also their own.  They have been running away from this mess for several years but thanks to NATO nations demanding WWIII with Russia, the various chess board moves designed to kill off Putin, Switzerland’s embrace of the euro is now endangering them so they basically dumped it all into the lap of the NATO nations.

 

Here is an interesting comment at the Schiff video from just two months ago:

 

I was over in Switzerland recently. The Swiss are paying far higher prices (33% more, and higher, than other countries) for pretty much everything. The only reason there isn’t much of an uproar is because wages are also very high too, and a lot of people just go live in Germany or France, and then commute into Switzerland each day to work for the higher wages. It’s a nice little scheme, if you can do it, and by do it I mean manage to actually get a job in Switzerland, which is incredibly hard because of the high labor costs.

 

I remember going into my work canteen and paying over 20 CHF (roughly $20) just for a plate of salad and a bottle of coke. It’s absolutely freaking ridiculous. If you go out to eat in Switzerland, bring a packed lunch, because that country is an absolute bloody rip off; the inflation is wild there.

On top of that, there is this huge push to have a super-welfare state where no one works unless they want to otherwise they can just goof off:  Inequality Fight: Swiss Will Vote on Minimum Income 

Back in October, 2013:  Cash Bern: Swiss may grant unconditional income for all – YouTube.  The scheme demonstrated how rich Switzerland by dumping a load of golden looking coins to illustrate that Switzerland is rich.

Generation Basic Income’s proposal represents a quantum leap. For starters, 2,500 Swiss francs per month is a substantial sum. Also, unlike with welfare programs, beneficiaries wouldn’t be required to document that they are unable to work. That the payments might discourage recipients from looking for a job isn’t a drawback in the eyes of proponents; it’s the whole point. “If unemployment goes up, that’s a great thing,” says Daniel Straub, the coordinator of the referendum effort and author of The Liberation of Switzerland. “Because we should see unemployment as freeing people up to pursue what creates meaning for them.” Adds Enno Schmidt, a painter and documentary film producer who’s campaigned for the idea since 2006: “It’s not societally very efficient if people are forced to do something that they don’t really want to do.”

 

No one will work.  The rich will isolate themselves via various means and the working class will basically quit their jobs due to the stark fact, it is tons more fun to stay home and goof off than to go to work every day.  Society will collapse within 5 years.  The US already has a system pretty much like that.  You sit in government housing in NYC, commit crimes, do drugs and goof off for generations.  Complain bitterly about it not being perfect and demand more spending on idle masses that destroy property, make lots of noise at night and robs everyone near and far not to mention, killing people.

 

The EU system is the same and created the same idle masses that spend much of their free time figuring out how to kill, steal, rob or vandalize.  It doesn’t work.  The Victorian work houses were very cruel but the concept of making people do something for their welfare money is key to a sane society.  Women who have illegitimate children should put them in day care by age 3 and set to work and of course, so long as they are not supporting themselves, be forced to use contraceptives which end when they get married or employed.

 

Oh, the cruelty, cry the liberals.  But what is cruel here?  Raising millions of children to be thugs, criminals or victims of crime with no hope of ever rising out of this?  The gap between welfare-raised children and middle working class children is already gigantic by age 5.  The children raised by idle parents tends to slide into idle adults.

 

What In The World Just Happened In Switzerland?

 

Thursday, the central bank shocked the financial world by abruptly abandoning it. More than three years ago, the Swiss National Bank announced that it would not allow the Swiss franc to fall below 1.20 to the euro, and it has spent a mountain of money defending that peg. But now that it looks like the EU is going to launch a very robust quantitative easing program, the Swiss National Bank has thrown in the towel. It was simply going to cost way too much to continue to defend the currency floor. So now there is panic all over Europe. On Thursday, the Swiss franc rose a staggering 30 percent against the euro, and the Swiss stock market plunged by 10 percent. And all over the world, investors, hedge funds and central banks either lost or made gigantic piles of money as currency rates shifted at an unprecedented rate.

 

Switzerland sees what is coming next: wars and insurrections inside the EU.  Already, the police are raiding Muslim neighborhoods and getting in major shoot outs there.  Like US cities when they become more than 50% black, then are completely abandoned by industry, businesses and middle class people, the EU is in the same downward spiral with armies of poor pouring into the cities.

 

The Swiss do not have open borders.  They are very protectionist.

 

End of CB Power – SNB Folds – Bruce Krasting

 

The Swiss economy will rapidly fall into recession as a result of the SNB move. The Swiss stock market has been blasted, the currency is now nearly 20% higher than it was a day before. Someone will have to fall on the sword, the arrows are pointing at Jordan.

 

The dust has not settled on this development as of this morning. I will stick my neck out and say that the failure to hold the minimum rate will result in a one time loss for the SNB of close to $100B. That’s a huge amount of money. It comes to 20% of the Swiss GDP!

 

This assumes that all Swiss are exporters.  Most are SAVERS.  Savers love a strong currency. Once upon a time, the US was a nation of savers, before 1970.  Now, it is a nation of debtors including the entire nation in debt to foreign powers.  The Swiss see the dangers of this and so are concerned about protecting their own savings from ravages such as that which has destroyed savings in the US.

 

CNBC:  Swiss move shows euro is like a bad, bad marriage—commentary

How do you know you’re looking at a bad marriage?

Well if one or both of the spouses can’t wait to get out as soon as the smallest crack in the door opens, you have a pretty good clue.

Something like that just happened in Europe as we learned the real reason why so many traders were still invested in the euro: They had nowhere else to go.

As the Swiss National Bank unlocked the doors on its cap on trading euros for Swiss francs, the rush to exit the euro was faster than one of those French bullet trains.

 

The top Swiss foresee the euro collapsing.  It is always on the verge of vanishing suddenly.  I expect it to disappear when social chaos makes the EU impossible.  This isn’t far off, either.

 

‘Like Christmas’: Rush to cash in on soaring Swiss franc – Yahoo Singapore Finance

…some 280,000 people working in Switzerland but living and paying bills in eurozone countries France, Germany or Italy.

These so-called “frontaliers”, or border-crossers, are the biggest winners in Thursday’s Swiss franc surge, seeing their incomes jump 30 percent in the blink of an eye.

 

As in all currency changes, there are winners and losers which is why we have a currency market.  Someone will always be hurt, someone will always get richer.  The question always is, will the government fall, will workers be hurt?  Hurt workers lash back over time.  Destroying their economic health is very dangerous.

 


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11 Comments

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11 responses to “Debate Rages About Swiss Currency Valuation Versus Euro

  1. melponeme_k

    “You sit in government housing in NYC, commit crimes, do drugs and goof off for generations. Complain bitterly about it not being perfect and demand more spending on idle masses that destroy property, make lots of noise at night and robs everyone near and far not to mention, killing people.”

    The library near 42nd street had a big drive to sign up illegal aliens for that IDNYC. I’ve never seen so many suspect “immigrants” in one place and ones who would never step foot into a library otherwise. Almost none in the line were regular citizens. And I greatly resent DiBlasio trying to destroy the value of real NY state driving licenses/non-driver IDs for this sham of a card. Really it is just a way to pour people into the assistance programs.

    Assistance programs of which their are now far more takers than there are workers. Something is going to give and it will be violent.

  2. e sutton

    I have heard repeatedly that the disability program in America has maybe two more years left worth of funding. This due to the increasingly large amount of people who either cannot find employment or are simply too lazy to go out and find a job. Admittedly, the job market is a disaster, and like “climate”, continually lied about by the MSM. Unemployment rate is 5.6%? In a pig’s eye! Having worked most of my adult life, I have been serially unemployed for about five years now. I built up substantial savings and also received an inheritance, albeit not a huge one. Luckily, my home is paid off. Still, with a master’s degree, I can only cobble together a part-time job here and there in order to survive. It is criminal what has been done to this country. The saddest part is, there are people who cannot work due to a true disability. The blatant disregard for workers is astonishing. We’ll always have lazy people, but they should not be rewarded for it. Where I live, I’m surrounded by people who enjoy feeding off the public trough. Sickening!

  3. Christian W

    Still, with a master’s degree, I can only cobble together a part-time job here and there in order to survive. It is criminal what has been done to this country. The saddest part is, there are people who cannot work due to a true disability. The blatant disregard for workers is astonishing. We’ll always have lazy people, but they should not be rewarded for it. Where I live, I’m surrounded by people who enjoy feeding off the public trough. Sickening!

    Well, in the UK the elites are currently exploiting the inherent contradictions of this situation using Elaine’s Victorian solution (“ The Victorian work houses were very cruel but the concept of making people do something for their welfare money is key to a sane society.“):. Ie highly educated people are forced to work for their dole wage at companies who use the expertise of the so called zero hour workers without having to pay a wage, instead the worker simply receives the dole for his/her efforts. The private business profits from the work they get for nothing and saves money by not paying a wage. So while the State goes bankrupt all profits are private – winwin for the private looters.

    Somehow I don’t think you will enjoy Elaine’s solution e.

  4. emsnews

    My husband was injured very badly at work and I had to quit work to take care of him.

    Workman’s comp is not easy to gain. We had to live on literal starvation wages (NO MONEY, I did all sorts of odd things including us living in a TENT for years!!!) until we won our case, hands down.

    Now we live in a house which I built. Note this: we had no money and lived in a tent…and survived fine…with a child no less…in winter in NY…

    And never took a government hand out during that time. We grew our own food, etc.

    The house we have now I built. The new poor we are getting don’t build homes. Once upon a time, the government allowed people to take land and build houses this is how the Great Plains was settled by Europeans who took this from the natives.

    Ah…past crimes!

    Anyways, the point is, I worked hard when we were poor and I did snow removal for businesses and neighbors to earn money and did other things like that and this is what is dying: the work ethic.

    Pride has a huge part in all this. I didn’t want handouts, I wanted justice and my rights and of course, the right to do things my way which is part of ‘freedom’.

    Workman’s comp is NOT a handout. Not at all. It is different from disability.

  5. Christian W

    Your life story is admirable, especially your refusal to compromise. Yet, I don’t think you are saying the you are the role model for everyone else to follow are you? Everybody’s situation and circumstances are different. Else, the easy solution would be to send out all the unemployed to live in hovels in the country side for a while until they somehow can get their life sorted out again.

    Obviously the social system is not designed to support malingerers and good for nothings and people who make social support into a life style. The problem remains one of social and political imbalance. The contradiction of US style extreme individualism (where everyone are supposed to fend for themselves and create their own life – the perversion of which is exactly the style of sucking the system dry we are seeing, especially at the top but also exploited by some at the bottom) is going to implode.

  6. emsnews

    I am, to be blunt, a ‘survivalist’. Have many skills and this is deliberate. I prepared for WWIII way back when I knew the SF writer Heinlein.

    My family is in several of his books. Look for the ‘bratty girl with a gun’ and you will see me.

  7. Jim R

    .. now a bratty old lady with an opinion.

    ΩΩΩ

    ELAINE: Yup, whippersnapper! 🙂

  8. ming the merciless

    Cassandra

  9. emsnews

    The video above is in reference to black swan events to Tristan und Isolde by Wagner.

  10. Lou

    ‘Workman’s comp is not easy to gain.’ If you were Black or an Immigrant that might not be the case.

  11. Christian W

    The short version of ZIRP programs, which are becoming NIRP (Negative Interest Rates rather than Zero Interest Rates), QE etc is that the West is simply following Japan into economic destitution for the non-elites. These programs are elite looting.

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